Making Global Sourcing strategies

This blog is on Global Sourcing strategies for business

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Use of global sourcing strategies is not limited among large organisations, the small and medium sized companies also need to use these strategies too. Although several benefits can be obtained from global procurement techniques, an organisation should have clear idea about procuring products from global markets. Otherwise, the procurement strategies will not be implemented effectively and it, in turn, would restrict the organisation from meeting its objectives.

Here, different stages of purchasing products from foreign countries are described so that the small organisations can understand how to implement global sourcing strategies.

Identification and assessment of market:

In order to procure products from global market, at first the organisations need to identify markets where the products will be available in large quantity. After the markets are identified, the business organisations should collect information on rules and regulations of the country. The companies also can try to identify the risks which can be caused for operating in a foreign market.

Use survey to identify the potential suppliers:

After identifying the market, the organisations require identifying the potential suppliers. It can be done through a supplier survey. The survey will also help the organisations to understand capabilities of the suppliers. The alternate suppliers will also be identified in this stage.

Selection of the supplier:

This stage deals with final selection of the suppliers. The businesses can prepare a list of potential suppliers and can select the best one through negotiation. Assessing quality of the products offered by the suppliers is also important for final selection.

If the organisations become able to identify the right suppliers, it is guaranteed that they will enjoy full benefits of global sourcing strategies. However, finding the right supplier is not easy and the small organisations might not have adequate infrastructure to search suppliers in other countries. Thus, the small businesses are advised to take help from sourcing agents to implement the procurement strategies effectively.

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